Phuket’s remarkable transformation from a relatively unknown beach destination to Thailand’s leading hub for luxury property investment has been largely due to a series of improvements to the island’s infrastructure. This evolution began with the completion of the Sarasin Bridge in 1967, connecting the island to the mainland and paving the way for easier access. In 1984, the Thai government’s investment in Phuket International Airport enabled the launch of direct international flights, boosting tourism and accelerating its development. Over the decades, continuous infrastructure upgrades have been crucial to sustaining Phuket’s increasingly vibrant property market, which today attracts discerning investors from around the world. As well as being an attractive choice for a tropical holiday home, the island is also a highly desirable place to live, offering a wealth of amenities, international schools, excellent healthcare, shopping centres and a stunning natural environment with a variety of breathtaking landscapes.
Phuket's resilient property market
Phuket's property market is strongly linked to its continued success as a leading tourist destination. Like other resort areas in Thailand, particularly Koh Samui and Pattaya, the property market is based on cash transactions and is therefore largely insulated from global economic downturns. The consistently strong tourism sector has provided stability and growth to the property segment over the years, making it a reliable choice for investors, propertywire.com points out in its analytical material.
This resilience is particularly evident in the luxury segment, which is thriving thanks to demand from high-net-worth individuals looking for attractive investments.
Market performance and recovery
The Phuket property market has demonstrated remarkable resilience and recovery following the global coronavirus pandemic, driven by a tourism revival that led to a record in 2023.
According to CBRE, apartment sales have reached new highs with over 3,300 units sold in 2023, more than double the average annual sales between 2014 and 2019. According to data for the first half of 2024, It can be argued that the past year will be among the best for the real estate market.
The villa market has grown, driven by increased demand for luxury properties and growing interest from wealthy Thai investors, digital nomads and families migrating to Phuket. Thailand welcomed over 35 million international tourists in 2024, an increase of 25% compared to 2023. This highlights Phuket’s ability to adapt and thrive in challenging global conditions, making it an attractive choice for property investment.
Phuket vs. Koh Samui: Which is the better investment?
When comparing Phuket and Koh Samui, value for money is a key factor. As offers, property prices are relatively similar, with studio apartments starting at around USD 60,000 and villas starting at USD 118,000. However, in the luxury segment, Phuket properties tend to command higher prices. The market-leading properties in Phuket can be valued at over USD 20 million, while the most exclusive villas in Koh Samui typically reach around USD 7-8 million. On a price per square meter basis, Phuket is more expensive, due to its excellent infrastructure, market maturity and higher land prices.
Primarily a market for villas, houses and apartments for rent, Koh Samui offers limited opportunities for freehold cooperatives, with no truly luxury properties of this type to rival Phuket.
In contrast, Phuket offers a wide range of condominiums, including high-end residences affiliated with international hotel chains. These properties offer integrated resort services and appeal to buyers looking for a seamless combination of luxury and convenience. Phuket offers a wide range of luxury apartments for sale, with prices ranging from half a million dollars to several million dollars for premium penthouses on the west coast, right on the ocean.
Property Types for Luxury Villas in Phuket
Direct foreign ownership of land is limited in Thailand, so luxury villas in Phuket are typically purchased through one of two methods. One is freehold ownership through a corporate holding structure. The other is a renewable lease. For the luxury market, villas priced at USD 900,000 or more represent the lower end of the spectrum.
Luxury Residences and Latest Trends
Phuket has established itself as a leader in luxury residential real estate in Asia. Recent developments such as The Standard Residences and Tri Vananda are just a few examples of branded real estate marketing to high-net-worth investors.
Post-pandemic demand for resort-style housing and sustainable properties has further boosted Phuket’s luxury market. Inland developments, such as the wellness-focused Tri Vananda community, reflect this trend, offering eco-friendly features and extensive green spaces. This shift highlights Phuket’s ability to adapt to changing market demands, ensuring it remains competitive and attractive to discerning investors.
Looking Ahead
Crucial to supporting tourism and advancing the property market is continued investment in Phuket’s infrastructure. The future looks bright for Phuket beyond 2025. “Phase 2” of the expansion of Phuket International Airport is currently in the design stage, with Airports of Thailand (AoT) planning to expand the airport’s capacity from the current 12.5 million passengers to 18 million. In addition to the new terminal building, the 3-year project will also include expanding the runways and taxiways and adding a custom seaplane terminal.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found HERE